Peloton and iFIT — the maker of NordicTrack — have settled their legal disputes against one another over alleged patent infringement. 

The settlement of all pending litigation marks the end of a checkered history between Peloton and iFIT.

In May 2020, Peloton sued iFIT — previously known as Icon Health and Fitness — claiming the company copied two patents for connected fitness programs. Five months later, iFIT sued Peloton for allegedly stealing patents for the company’s latest stationary bike model.

In November 2021, Peloton filed an additional lawsuit against iFIT and fellow industry rival Echelon over alleged patent infringement related to the company’s on-demand fitness classes. 

As part of the settlement, Peloton and iFIT will be required to make a few changes. 

• Peloton will license some iFIT patents that deal with remote-control technology.
• iFIT is required to remove select on-demand leaderboard technology from its products. 

In February, iFIT secured $355 million in funding. The raise valued iFIT at less than $3 billion, down from a $7 billion-plus valuation in October 2020. 

Peloton Downward Cycle 

Peloton generated $964.3 million in revenue in fiscal Q3, a 24% decrease year-over-year. The company also reported a net loss of $757.1 million during the quarter, a significant jump from an $8.6 million loss in Q3 2021. Earlier this month, Peloton signed an agreement with JPMorgan and Goldman Sachs to borrow $750 million in five-year term debt to combat the losses.

Private equity might be leaning even further into international soccer — this time into Liga MX.

Apollo Global Management is proposing a $1.25 billion investment in the Mexican league, according to Sportico. In return, the firm, which boasts $498 billion in assets under management, is asking for 20% of profits from international broadcast rights.

• In order for the deal to work, Mexican teams reportedly have to bundle media rights rather than selling them individually.
• The pitch, part of a deck called “Project Goal,” will reportedly be sent to the league by the end of the week.

The investment would make sense given Liga MX’s major success in the U.S. market: It’s more popular than any other soccer league.

Fraught Partnerships

Private equity firms aren’t always welcome in soccer.

It took multiple tries for CVC Capital, for example, to land a deal. It had failed in negotiations with Germany’s Bundesliga and Italy’s Serie A before an agreement was finalized between the firm and Spain’s La Liga.

The deal provided the league with a $2.3 billion cash injection — though even the newly minted funds didn’t stop some teams from questioning it.

The Kansas City Royals’ lease at Kauffman Stadium doesn’t end until 2031, but the team is reportedly considering moving downtown in time for the 2026 season.

“A new stadium could open before the end of our current lease and stay true to our goals of keeping the Royals and Chiefs in Kansas City for the long term,” the Royals confirmed to The Kansas City Star. 

The Chiefs, whose lease at the adjacent Arrowhead Stadium aligns with the Royals’, have reportedly contemplated moving across state lines.

Majority owner John Sherman, who bought the team for $1 billion in 2019, has said a “public-private partnership” will be required with cooperation from local officials. City manager Brian Platt says Kansas City already has “limited financial resources” for key priorities.

Sluggerrr’s Scene

Originally called Royals Stadium, Kauffman finished a $70 million construction in 1973. The Star reported that two new locations have dominated the team’s conversations. 

• The team reportedly prefers a spot in the East Village within the freeway loop — blocks from T-Mobile Center and the Power & Light District.
• Politicians are reportedly vying for a stadium next to the 18th and Vine Historic Jazz District, a few minutes further from downtown.

East Side developer Tim Duggan thinks the underdeveloped Jazz District location “could have profound economic development impact opportunities.”